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2018 (4) TMI 1182 - AT - Service TaxPenalties u/s 76 and 77 - Classification of services - services such as supply of infrastructure like table, chair, network, electricity, telephone etc. to the insurance companies - whether classified under insurance auxiliary service or Business Support Services - Held that: - the appellant have replied to the SCN contending that they have been appointed as corporate agent for insurance companies and therefore their activity would not fall under Business Support Service and would fall within the Insurance Auxiliary Service; that therefore it is the insurance companies that have to pay the service tax - demand of duty with interest upheld. It is clear that they have failed to pay the service tax on the bonafide belief that the activity did not fall under Business Support Service. Taking this into consideration, the penalty imposed under section 76 is unwarranted - penalty u/s 77 upheld. Demand of duty with interest upheld - penalty u/s 77 upheld - penalty u/s 76 set aside - appeal allowed in part.
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